[Your shopping cart is empty

News

Iran steel market Trend in Week 39th , 2021

Iran steel market Trend in Week 39th     , 2021

Billet

Billet price was upward during last week in Iran domestic market from USD 566/mt to USD 598/mt ex-work including 9% VAT. The reason was higher ex-rate and empty warehouses of re-rollers.

Long Products

Rebar market also experienced upward trend from USD 655/mt to USD 668/mt ex-work including VAT by end of the week. Higher currency rate and empty warehouses of traders and mills was again the reason behind this upward trend.

Optimistic sentiment of the market made I-beam price also upward from USD 675/mt to USD 690/mt ex-work including VAT.

Flat Products

Price of 2 mm thickness HRC was USD 1076/mt ex-work Mobarakeh on last Saturday, which reached USD 1124 /mt by Tuesday. Mill’s controlling the market, along with Isfahan fair, which had taken traders out of their offices, made HRC price up, but demand level was not very interesting.

Oxin co HRP supply level has improved while demand level has not changed. Therefore average price dropped from USD 1179/mt to USD 1154/mt, but traders were resisting against falling prices. Market average price has reached the bottom as is near purchase prices of three months ago.

Kavian co HRP price was almost stable at USD 1109/mt due to mill’s control but Oxin co price trend would affect it soon.

CRC market experienced upward trend from USD 1232/mt to USD 1261/mt ex-work including VAT as ex-rate improved and traders stayed back.

HDG market was almost stable and improvement in price of some sizes made average price up by USD 26/mt to USD 1281/mt ex-work including 9% VAT.

Weekly Analysis:

Several factor  are affecting market trend these days.

First, the exchange rate, which is the basis of export prices and does not seem to fall below Rials 270,000/USD in free market.

The second factor is demand, which is currently in shortage due to Holidays, and has disrupted production.

At present, most re-rollers do not have enough raw material stock in their warehouses as they hoped prices would decline, and avoided purchasing raw materials. This led to an increase in price of long products. In the coming week, these mills will seek to buy billet to fulfill their obligations, which will make prices upward. Eventually, the market will be balanced within two weeks.

Flat products market has been facing the same trend. Religious Mourning Holidays besides some Steel Fairs in Isfahan and Istanbul has declined supply level as market participants were out of their work. Besides, government's policy of regular and wide spread supply does not allow prices change much, especially as global steel market trend is also declining. On the other hand, power cuts issue in China is serious and this will affect our export level. But possible gas supply problem may have negative effect in this regard on our export market.

Due to the limited scrap supply, cutting gas supply will disrupt DRI supply, which will naturally affect raw material market seriously. There are ups and downs ahead, but the government is trying to help the market through Stock Exchange market.

CBI weekly average ex-rate for Steel Products (SANA): Rials 231,381 USD

04 Oct  2021

Iran Steel News Bulletin

IFNAA.IR

IRSTEEL.COM

 

Oct 4, 2021 14:10
Number of visit : 619

Comments

Sender name is required
Email is required
Characters left: 500
Comment is required